Los Angeles jeweler pleads guilty in KPMG case; faces up to 5 years in prison

LOS ANGELES – The owner of a jewelry store has pleaded guilty in Los Angeles for his role in an insider-trading case involving a former senior partner at accounting firm KPMG.

Federal prosecutors say 52-year-old Bryan Shaw entered his plea Monday to one count of conspiracy. He's scheduled to be sentenced Sept. 16 when he faces a maximum of five years in prison.

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Authorities say Shaw made over $1 million in illicit profits by trading in advance of company announcements on earnings results or mergers. In exchange, he gave former KPMG accountant Scott London bags filled with cash, along with a Rolex watch and jewelry for his wife, among other items.

London also is charged with conspiracy and is scheduled to be arraigned later this week.